Gov't will turn to other oil firms if Shell talks fail

Government may move to allow other oil firms to increase their oil imports to compensate for Pilipinas Shell Petroleum Corp.’s (PSPC) import halt over the unresolved P7.3-billion tax row fail if talks yield no results according to a gmanews.tv report.

“There are many other oil firms. If needed, we can allow them to import more fuel. We have independent players aside from big firms Caltex and Petron. They can ramp up their production," Deputy Presidential spokesperson Ricardo Saludo said on dzRB radio, qouted the article.

Government has also urged PSPC to accept a compromise proposed by the Department of Finance (DOF), that the P7.3 billion (US$158 million) in an escrow account while the case is settled in court. The money would be returned to Shell if they win the case.

Shell spokesperson Roberto Kanapi said they halted importation Feb. 9 due to the Bureau of Customs (BoC) “threat of seizure” of their property.

Kanapi said that though they already have a temporary restraining order (TRO) that prevents the BoC from seizing their current supply, they will continue the import halt since the TRO does not cover future imports from being seized.

The BoC ordered to seize their supply for alleged back taxes on catalytic cracked gasoline (CCG) and light catalytic cracked gasoline (LCCG) imports that Shell had failed to pay from 2004 to 2009.

Shell contests the action, saying that LCCG and CCG are raw material not subject to excise taxes.

Members of the house have previously sided with PSPC on the issue, commenting that the BoC’s restrictive interpretation of the tax law and threat of seizure of PSPC assets is detrimental to the economy.

Add this page to your favorite Social Bookmarking websites